During a 24 month period, ten children fitting the criteria of the immune deficiency syndrome (AIDS) and their household contacts were followed. Five of these children have died. All were born to parents where one or both had recognized risk factors for AIDS. Seven mothers and 3 fathers studied, were asymptomatic but only 3 had normal immune studies. There were 3 mothers and 2 fathers who were both symptomatic for AIDS and had abnormal immune studies compatible with AIDS. Five younger siblings of these 10 childhood AIDS cases and 3 foster mothers have remained asymptomatic and immunologically normal during this study period. This study suggests that first born infants to parents with AIDS risk factors are at the greatest risk of developing AIDS, most probably by vertical transmission of the AIDS agent. Transmission of AIDS from index children cases to other household contacts has not been demonstrated and such transmission appears unlikely to occur. These observations are significant in that intra-familial spread, if it does occur, is likely to be an infrequent event. This data should assist those AIDS patients requiring social services to find placement in homes or with agencies following discharge from hospitals.